Australia’s New Inland Rail Project Approved: How This Mega Investment Will Revolutionize Freight Between Melbourne and Brisbane

Published on December 5, 2025

A major step has been taken in the ongoing Inland Rail project, with the final section receiving planning approval in New South Wales (NSW). This section, part of the ambitious 1700km rail link between Melbourne and Brisbane, has been approved and is expected to become operational by 2027. The project, which has faced significant cost increases, is aimed at improving road safety, reducing truck traffic on the Pacific Highway, and relieving pressure on Sydney’s suburban rail network.

A Costly and Critical Investment in Freight Infrastructure

The Inland Rail project has been a long-standing initiative funded by the Australian Federal Government, designed to transform the country’s freight network. Stretching across 1700 kilometers, the project aims to shift freight transportation from road to rail, a move that is expected to have significant benefits in terms of reducing road congestion, improving safety, and cutting emissions. This will also relieve pressure on Sydney’s rail system, providing a more efficient means for transporting goods.

However, the project has not come without its challenges. Originally expected to be completed with a lower budget, the cost of the Inland Rail has escalated over time. By 2023, the estimated cost of the project had more than doubled, reaching $31.4 billion, according to an independent review by Kerry Schott. Despite the rising costs, the project continues to be viewed as a vital infrastructure investment, crucial for the future of Australia’s freight and transport networks.

Approval for the Narrabri to North Star Section

On Friday, the New South Wales Government granted approval for a key 184km section of the rail line between Narrabri, Moree, and North Star, near the Queensland border. This section is vital for connecting regional areas and facilitating smoother rail freight operations as part of the broader Melbourne-to-Brisbane link. The project will involve upgrading existing tracks and constructing new sections of rail line, specifically through the Narrabri, Gwydir, and Moree Plains council areas.

The approval came after a comprehensive assessment process, which included studies on flooding, biodiversity, traffic, and Aboriginal cultural impacts. These assessments were crucial in ensuring that the rail project’s environmental and cultural considerations were properly addressed before construction could proceed. This final approval is a significant milestone in the ongoing development of the Inland Rail project, which has faced numerous hurdles and delays over the years.

Benefits of the Project: Road Safety and Emission Reductions

One of the primary goals of the Inland Rail project is to reduce the number of heavy trucks on the Pacific Highway, which is a major freight route between Melbourne and Brisbane. The shift from road to rail transport will not only improve road safety but also reduce the environmental impact of freight transportation by cutting emissions. By moving freight off the road, the project aims to make Australia’s transport network more sustainable and safer for all road users.

NSW Planning Minister Paul Scully emphasized the long-term benefits of the project, highlighting that it goes beyond just laying down tracks. He noted that the project would unlock significant opportunities for regional growth, particularly in logistics, agriculture, and trade. The Inland Rail is seen as a catalyst for economic development, providing better access to markets and resources, and boosting regional economies across NSW, Victoria, and Queensland.

Job Creation and Economic Opportunities

As the Inland Rail project progresses, it is also expected to create substantial employment opportunities, both during construction and upon completion. The Narrabri to North Star section is set to create 150 jobs during the construction phase, with an additional 50 ongoing positions once the section becomes operational. These jobs will be vital for the local economies along the rail corridor and will help support communities as they adapt to the changes brought about by the new infrastructure.

Beyond direct employment, the project is expected to stimulate broader economic growth, particularly in regional areas. By improving access to major markets and facilitating more efficient freight transport, the Inland Rail will likely have a positive effect on the agricultural and logistics sectors, as well as other industries reliant on efficient transport networks.

The Ongoing Development of the Inland Rail

The Inland Rail project was first initiated in 2018 and has faced several delays and cost overruns since its inception. The most recent review by Kerry Schott found that the project’s costs had ballooned significantly, from initial estimates to the current figure of $31.4 billion. This increase in cost has been a point of contention, but the project is still viewed as essential for Australia’s future infrastructure needs.

The Australian Rail Track Corporation (ARTC), which has been responsible for managing the Inland Rail project, has overseen upgrades to approximately 1000 kilometers of existing track and the construction of 600 kilometers of new rail line across regional areas of Victoria, New South Wales, and Queensland. The full rail link will connect Beveridge, north of Melbourne, to Kagaru, near Brisbane. Once completed, it is expected to be capable of transporting 21 double-stacked freight trains, greatly improving the capacity of Australia’s rail freight network.

Challenges and Future Prospects

Despite the challenges faced by the Inland Rail project, including cost overruns and environmental concerns, the infrastructure investment is expected to deliver long-term benefits to the Australian freight and transport networks. The improved rail link will allow for faster, more efficient freight transportation between Melbourne and Brisbane, reducing the need for road transport and supporting the growth of key industries in the region.

As construction progresses, future phases of the Inland Rail will focus on completing the remaining sections and addressing any outstanding environmental and community issues. The full project is expected to be completed in stages, with operations anticipated to commence in 2027.

Conclusion: A Transformative Project for Australian Freight

The Inland Rail project remains one of the most ambitious infrastructure undertakings in Australia’s history. With the final planning approval of the Narrabri to North Star section, the project continues to move forward, albeit with rising costs and ongoing challenges. Once completed, the Inland Rail will transform freight transport across Australia, making the nation’s road network safer, reducing emissions, and supporting regional economic growth. The project’s completion in 2027 will mark a significant milestone in the development of Australia’s freight infrastructure, positioning the country for a more efficient and sustainable transport future.